Australia Consumer Confidence

Australia: Consumer sentiment inches down in July

July 11, 2013

In July, the index of consumer sentiment published by Westpac and the Melbourne Institute inched down to 102.1 points from 102.2 in June. As a result, the index remains above the 100-point threshold that separates optimistic from pessimistic territory for a second consecutive month.

The slight moderation in consumer sentiment stemmed from a deterioration in households' assessment of the current and future condition of their personal finances, which more than offset improving expectations (both short and long term) for the general economy. Against this backdrop, the sub-index reflecting intentions to purchase major household items fell 1.7% over the previous month.

FocusEconomics Consensus Forecast panellists see private consumption growing 2.4% in 2013, which is unchanged from last month's forecast. Panellists see private consumption expanding 3.1% in 2014.

Seasonally-adjusted employment increased by 3,700 in October compared to the prior month, down from the revised 26,600 jobs created in September (previously reported: +19,800 jobs) and sharply undershooting analysts’ expectations.